I think the only reason sony released a new ps3 model is for a couple of reasons. A) It is definitely a lot cheaper and they kept them at the same price points to get maximum profits because everyone knows they need them. and B) To help extend the ps3s life another few years as the ps4 comes out.

I don't think the ps4 is needed for another 1-2 years, but I do believe they could have a pretty powerful machine in a couple of years because the cost of blu ray is way down and they are not using the cell anymore.

Sorry man but is not like the Wii isnt selling well. It simply reached its saturation point and it is obviously in decline. The Wii was made to behave like that. Sell all you can in a few years, after all its cheap, make lots of money and release a new system right when your competition is starting to feel comfortable and force a reaction that might cost a few millions of dollars right when they don't want to. Your MS comment makes no sense. Just because they have more money it doesn't mean that their games division makes more money than Sony or Nintendo. Besides, any games division should operate on their own money. When you have to get money from other parts of the company to make up for loses is proof that something is wrong. The 10 year plan is a delusion. Many think that exactly in 2016 Sony will launch its new system. Which kinda made sense in 2005 or 2006 when every1 thought Sony would remain the videogames market king. Thats not what happended. We all know the PS2 had an installed base around 35% bigger than PS3 during the same period of time. Thats a drastic reduction and they are not making the same money they were doing. Factor in a not that succesful PSP and the complete (and expensive) Vita flop and you have a recipe for gigantic losses. As I said they can not afford another bleeding system. I'm surprised that, even after the PS3 lessons, they created Vita. Another system now would have meant Sony's byebye from the vg market.

tagging! It'll be an interesting read! And as some of you might know I've got quite a few things to say about this subject ;)

Possibly, but I don't think sony would of done it unless PS3 started selling badly, which it isn't. Plus PS4 still isn't really needed, PS3 still gets plenty of support, let sony capitalise on it

launching a new hardware 1 year or 2 after the competition is a bad idea, Sony will have to play catch up again next gen

No, I think they'd struggle to differentiate it from the ps3 and possibly more importantly the Wii U. If they don't create a significant enough gap between themselfs and the wii U they are essentially handing Nintendo the majority of the hardcore market. They would also have no unique titles, just 3rd party ports.

Also they'd be throwing away money which they could be making on the Ps3.

Personally I want to see a late 2014 PS4 with avatar graphics ^_^

http://www.avforums.com/forums/attachments/movie-news/336278d1347358083-james-cameron-confirms-avatar-4-avatar.jpg

The PS3 still sells for $300.  Here you go:

They still have time, but not much.

SONY need to surprise everyone and beat Microsoft to the punch.

The ps4 will release when the nextbox does

Whatevs, things are working nicely for them. Sales are fine, I say 2013 holiday is when we will get ps4.